Renewable Energy Group (REG) has acquired a 15
million gal/year biorefinery located in New Boston,
Texas, the US-based biodiesel producer said on
With the acquisition, REG's nameplate biodiesel production
capacity is expected to increase to more than 225 million
gallons annually, according to the company.
REG paid $300,000 in cash and issued 900,000 shares of its
common stock to North Texas Bio Energy for the multi-feedstock biorefinery, located about
22 miles west of Texarkana.
It is REG's second Texas biodiesel production facility,
following the 2008 acquisition of its Houston-area
"Bringing New Boston into the REG family grows our solid,
proven business model of using lower cost feedstock and providing cleaner
energy solutions for American consumers," said REG chief
executive Daniel J. Oh.
"Our customers across the southern US demand more
REG-9000 biodiesel, and this is a long-term plan to
respond to our customers' needs. We remain focused on strategic
growth by increasing the availability of biodiesel in high
distillate demand regions throughout North America," Oh
The New Boston facility began production in June 2008 and
has been idled for approximately four years. Brad Albin, REG
vice president of manufacturing, said the plant will undergo
some construction and minor upgrades
prior to the facility's start-up, which is expected in the
first quarter of 2013.
REG said it plans to utilize animal fats and other high free
fatty acid feedstocks to produce biodiesel at
the refinery. The company has initiated
RFS2 registration through the EPA.
"The REG technology team will soon be on-site
in New Boston to re-start the biodiesel process with a plan to
have high quality, REG-9000 biodiesel available in the
market upon the completion of the EPA registration process,"
The company said it expects to hire nearly 20 full-time,
green-collar employees at the REG New Boston site.